Oil declined at the start of the week as concerns about an economic slowdown overshadowed signs of a tight physical crude market.
West Texas Intermediate fell below $94 a barrel after capping a third weekly decline on Friday, the longest streak of losses this year. The Federal Reserve is expected to approve another big interest-rate hike this week as the US central bank combats surging inflation, piling pressure on demand.
Russia's invasion led to Saudi Arabia and Iraq diverting more oil toward Europe. The US is calling for a cap on Russian oil prices.
While oil has been whipsawed by escalating fears that the US is heading for a recession, veteran commodities trader Pierre Andurand says oil demand may exceed expectations even if the global economy falters. Consumption growth has lagged behind its four-decade trend over the past few years because of virus lockdowns, and should revert back to normal levels, he said on Twitter.
A segment of the massive Keystone pipeline that delivers Canadian crude to the key US storage hub at Cushing restored normal operations late Friday following a power disruption. Service was still subject to mid-month capacity reductions, according to a bulletin obtained by Bloomberg.
